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IndusInd
to tap forex derivatives
Mumbai: With interest rates having perhaps bottomed
out and trading incomes from the debt markets - the major
contributor to banks' profitability over the last two
years - set to decline, IndusInd Bank plans to increase
its focus on the foreign exchange business in the current
year. "The bank earned about Rs 15.5 crore from the
forex business for the year ended March 31, 2003 and plans
to more than double it in the current year. We will go
beyond plain vanilla products and focus on derivative
products," said Bhaskar Ghose, managing director,
IndusInd Bank. This would include a whole suite of new,
sophisticated and little-known products which were used
for hedging foreign exchange exposures of corporates such
as interest rate, currency and cross currency swaps and
currency options.
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StanChart
posts Rs 848 cr net
Mumbai: Standard Chartered Bank (StanChart) has
posted a net profit of Rs 848.3 crore. While the net income
stood at Rs 1,694 crore, the cost-income ratio is at 34
per cent. The result figures are not comparable to the
previous fiscal as StanChart was officially merged with
ANZ Grindlays in October 2002. In 2001-02, StanChart had
posted a net profit, while ANZ Grindlays had reported
a net loss. Said StanChart CEO Christopher Low: “The
bank’s results have given a clear indication that
the Grindlays’ integration has been a success. There
has been excellent growth in our consumer banking segment,
with the launch of new products and services in transactional
banking and supply chain financing. Total assets of the
bank were Rs 29,300 crore and the ratio of non-performing
assets (NPAs) to net advances stood at 0.31 per cent.
Low added: “The highlight of the year was the control
of risk, with asset quality remaining strong.”
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FinMin,
RBI firming up TIN to plug tax evasion
New Delhi: The finance ministry (FinMin) and Reserve
Bank plan to put in place a Tax Information Network (TIN)
proposed by the Kelkar Task Force, in a bid to improve
tax administration and check evasion. A high-powered committee,
comprising officials from FinMin and RBI, is working on
TIN and a framework would be finalised within this fiscal,
official sources said here on Wednesday. The Central Board
of Direct Taxes has taken up the project with RBI to modernise
tax administration in line with that suggested last year
by the Task Force under Vijay Kelkar, advisor to finance
minister Jaswant Singh. When contacted, RBI officials
said this is one of the most important projects and would
require the use of latest technology blended with financial
acumen. The proposed TIN system will be capable of assessing
the tax deducted at source (TDS) of all tax payers, processing
advance tax collection and facilitating refunds.
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IOB
plans to seek shareholders’ nod for Rs 100 cr IPO
New Delhi: Indian Overseas Bank (IOB) plans to
return government equity worth Rs 75 crore and raise Rs
100 crore from the capital market, for which it will seek
shareholders’ approval on July 18. The bank has decided
to return to government 7.5 crore equity shares of face
value Rs 10 each, subject to necessary approval of the
finance ministry, IOB officials said here on Wednesday.
The ministry is in the process of deciding whether to
attach a premium on the equity returned by PSU banks.
The Chennai-based bank may return the equity in one or
more tranches as agreed by the government. IOB officials
said the bank plans to raise Rs 100 crore through a public
offer to raise capital base to Rs 545 crore. It has kept
options open for preferential issue also. This would be
IOB’s second IPO. It tapped the market first in 2000
to offload 25 per cent of government holding.
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AA
rated paper finds favour with banks
Mumbai: A number of PSU banks that had shied away
from investing in "AA" (double A) rated papers
are now being tempted by the better yields this segment
offers compared to Government securities (G-secs). Bankers
admit that despite their conservative approach to investments
in the past where a higher credit rating is mandatory,
they now have an increased appetite for double A rated
paper in the wake of triple A rated papers thinning out
from the market. According to a senior PSU bank official,
triple A rated papers are no longer available in bulk
quantities, with issuers buying back their issues as they
can raise cheaper funds through the ECB route. He says
the issuance of double A rated papers is expected to gather
momentum in the near term. About two weeks back, Ashok
Leyland raised Rs 25 crore through double A rated paper
and the issue was picked up entirely by a public sector
bank at the rate of 6.20 per cent. Bankers contend that
the added attraction is that the yield on some of these
papers is 25 basis points higher than the G-sec bonds
of the same tenors, thus enabling better spreads.
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BoI
networking all branches in Kerala
Thiruvanathapuram: All 26 branches of Bank of India
(BoI) in the State are in the process of being interconnected
to provide Multi-Branch Banking (MBB) services through
multiple delivery channels. OMNIEnterprise financial transaction
switch of the Mumbai-based InfraSoft Technologies, a leading
global banking and financial solutions company, has been
used by BoI for the purpose. BoI has already inter-connected
275 braches nationwide and 450 branches are being included
in the BoI MBB network in the Phase-II. Soon BoI will
be able to offer customers networked ATM transactions,
Internet banking, phone and fax banking, mobile banking,
funds transfer, clearing and any branch banking over-the-counter,
irrespective of the location of the account of the customers
in Kerala and other cities of India.
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Western
Union ties up with AFL Wiz
Chennai: Western Union Financial Services International,
which has a liaison office in India, has tied up with
the Mumbai-based AFL WiZ for home delivery of remitted
money. AFL WiZ, already an agent of Western Union, is
one of the larger courier companies in India. ALF would
home-deliver the remitted money at no extra charge, S
Ranganathan, general manager, ALF WiZ, said at a press
conference here
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AMP
Sanmar ties up with AP govt to tap rural mkt
Hyderabad: In a unique development, AMP Sanmar
Assurance Company Ltd (AMP Sanmar) has joined hands with
the Andhra Pradesh government to sell its products in
the rural markets while providing employment opportunity
to the rural unemployed youth. To this effect, an MoU
was signed here on Wednesday between the company and the
directorate of youth services, AP government, to create
more jobs in the form of ‘insurance advisors or agents’
in the state. As per the agreement, AMP Sanmar would adopt
four districts of Karimnagar, Kurnool, Nellore and East
Godavari initially to train unemployed youths, offered
by the Directorate of Youth Services, as insurance advisors
for 15 days. While the company would select candidates
and train them as per regulations, the state government
will provide the infrastructure and facilities in the
districts. The training programme including the faculty
and course materials will be supplied by AMP Sanmar. Following
training, they will be recruited as agents (those successful
in getting the Agent’s license issued by Irda) paid
a stipend of Rs 500 a month for a period of six months.
This will be in addition to the commission paid on policies
sold by them, AMP Sanmar head (marketing) S Balachander
said.
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Fitch
places L&T Holdings’ NCD rating under watch
Mumbai: FITCH Ratings India has placed the AA+
(ind) (SO) rating assigned to L&T Holding Ltd’s
(LTHL) Rs 50 crore non-convertible debenture programme
on “watch with evolving implications.” The rating
is supported by an irrevocable and unconditional guarantee
from Larsen and Toubro Ltd (L&T) and this action follows
the decision of L&T to demerge its cement business
into a new company, FITCH said in a release here on Wednesday.
FITCH is monitoring the developments and is in discussions
with the company regarding the implications, it added.
LTHL was incorporated in FY01 as a 100 per cent subsidiary
of L&T to invest in non-power related infrastructure
projects.
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CBDT,
CBEC asked to submit views on transfer policy report
New Delhi: The Central Board of Direct Taxes (CBDT)
and the Central Board of Excise and Customs (CBEC) have
been asked by revenue secretary Vineeta Rai, to submit
their views on the report on transfer policy drafted by
advisor to finance minister, Vijay Kelkar. The Kelkar
report on transfers states that the new policy in its
entirety will come into effect from the next financial
year but the broad guidelines should be implemented from
this year. The draft transfer policy largely concentrates
on the creation of a database, formation of placement
committee for policy implementation, grievance redressal
mechanism, classification of station and tenure of stay
in different stations, posting policy for officers of
different ranks, policy to consider different compassionate
issue and transition management. The most important reccomendations
pertain to the institutional mechanism of forming ‘IRS
placement panel’ and the setting up of ‘redressal
mechanism’ outside the revenue boards. Unlike the
present system of chairman-centric transfer exercise,
the new committee should comprise the chairman, all the
members, a non-IRS officer of not below the rank of additional
secretary to be nominated by the finance minister and
the joint secretary (administration) who could be the
secretary to the committee.
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Citibank
to offer lower interest for PBAP homes
Pune: The raging competition in the housing finance
market is forcing foreign banks to open up. In a first
of its kind agreement, Citibank is going to offer flat
buyers a concessional interest rate if they buy flats
from a member of the Promoters & Builders Association
of Poona (PBAP). The differentials range from 0.25 per
cent to 0.75 per cent. The loan would be only for PBAP
listed developers, PBAP president PA Inamdar said. A PBAP
member project assures quality control and timely possession,
he added. PBAP managing committee member Rohit Gera said
any loan carried a risk of default and in case of housing
finance there was an additional risk as financing was
mostly done for projects that were under construction
where there were possibilities of the property not being
built as promised.
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